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(Bloomberg) -- Although San Francisco is home to America’s most popular e-cigarette brand, city officials are signaling that they want nothing to do with Juul.The city voted Tuesday to ban sales of e-cigarettes, making it illegal to sell nicotine vaporizer products in stores or for online retailers to ship the goods to San Francisco addresses. The ban will be the first of its kind to go into effect in the U.S.The ordinance will now go to the mayor to sign into law. Cigarettes and other tobacco products will remain legal in the city, along with recreational marijuana.As cigarette use in the U.S. declines, tobacco companies have looked to other areas for revenue growth. Altria Group Inc., which sells Marlboro cigarettes in the U.S., bought a 35% stake in Juul Labs Inc. last year, valuing the startup at $38 billion. Juul told investors last month that revenue rose to $528 million in the first quarter, as international sales took off. This week, an Indonesian retail chain that sells iPhones said it expected to begin carrying Juul products, sending its stock surging.The legislation in San Francisco is aimed at all e-cigarette companies, but it has to feel personal for Juul. The San Francisco-based startup is the biggest target for vaping critics, who say it’s hooking kids on nicotine and creating a new generation of addicts.Juul said it’s committed to stopping people under 21 from buying or using its products, but it wants to keep its vaporizers available to adult smokers looking for an alternative to cigarettes. “This full prohibition will drive former adult smokers who successfully switched to vapor products back to deadly cigarettes, deny the opportunity to switch for current adult smokers and create a thriving black market instead of addressing the actual causes of underage access and use,” Ted Kwong, a spokesman for Juul, wrote in an email after the vote.Read more: The debate over vaping—a QuickTake explainerAfter Tuesday's vote, Mayor London Breed has 10 days to review the legislation. If she signs it, the ban will take effect seven months later, when Juul and similar products will have to be removed from store shelves.Juul has a backup plan: Put the issue in front of voters. The company said it has collected the required number of signatures to add a measure to the November ballot that would keep e-cigarettes available for purchase in the city to adults over 21. Juul is the major financier behind the Coalition for Reasonable Vaping Regulation, which has been collecting signatures.On Tuesday, city supervisors also passed an ordinance blocking the sale, manufacture and distribution of e-cigarettes on city property. Juul currently leases office space from the city on Pier 70, but because the ordinance doesn’t apply retroactively, Juul will be able to stay in its space. Even so, Juul has a backup plan for this, too: Last week, the company said it bought a 29-floor office tower at 123 Mission Street and plans to start adding employees there in the next year.City Attorney Dennis Herrera co-sponsored the sales ban with a city supervisor because, he said, the U.S. Food and Drug Administration failed to require e-cigarette companies to go through a pre-market approval process before they were allowed to sell their products. The FDA began overseeing e-cigarettes in 2016 under the Obama administration. After Donald Trump took office the next year, the agency said it would push back until 2022 a requirement that vape companies submit applications to continue selling their products. Once a product has FDA approval, the legislation would allow its sale in San Francisco again.“We’ve seen a tremendous increase in use of e-cigarettes, which has led to increased rates of nicotine addiction among young people,” Herrera said. “I don’t think San Francisco is any different from any other city.”Three weeks ago, Beverly Hills, California, passed the first sweeping prohibition on most tobacco sales, including e-cigarettes, starting in 2021. But a sales ban can’t stop people from heading to nearby cities to get their nicotine fix. That doesn’t worry Herrera.“This is groundbreaking legislation that shows local governments are prepared to step up,” he said. “What you will see in the aftermath of this legislation is other jurisdictions looking at what they might be prepared to do to protect their young people.”(Updates with comment from Juul in the sixth paragraph.)\--With assistance from Anna Edney.To contact the author of this story: Ellen Huet in San Francisco at firstname.lastname@example.orgTo contact the editor responsible for this story: Mark Milian at email@example.com, Anne VanderMeyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
PepsiCo (PEP) is focusing on driving greater efficiency and effectiveness, by lowering costs and plowing back savings to develop scale and core capabilities.
The beverage giant may be known as a reliable income stock, but here are a few better choices if you're looking for high yields.
As of June 21, Altria was trading at a forward PE ratio of 11.1x—compared to 12.8x before its first-quarter earnings were announced. Altria posted its first-quarter earnings on April 25.
While Las Vegas Sands (LVS) has an edge over MGM Resorts (MGM) in terms of projected EPS, the latter has a better debt-to-asset ratio.
Scott Gottlieb’s comments might have led to a fall in Altria’s stock price on June 21. At the closing on June 21, the company was trading at $48.00—a fall of 4.5% from the previous day’s closing price.
(Bloomberg) -- Shares of PT Erajaya Swasembada, an Indonesian distributor of Apple Inc.’s iPhones and Samsung Electronics Co.’s smartphones, surged the most in more than a year after the company said it was close to a tie-up with electronic cigarette manufacturer Juul Labs Inc.Erajaya will soon announce details of the partnership with Juul, Budiarto Halim, president director, said by phone on Monday. “I’m currently bound by a non-disclosure agreement,” he said.Juul has signed an exclusive distribution deal with one of Erajaya’s units and will begin to retail e-cigarettes in greater Jakarta area, Java and Bali from the end of this month, Citigroup Inc. said in a report, without saying where it got the information. In the launch stage, the product will consist of Juul basic kit, charger and refill kits, analysts Vivi Lie and Ferry Wong wrote in the report.Juul’s device will have a one-year warranty and the roll-out will be supported by marketing campaigns on television, digital, billboards and print media, Citi said. Still, its impact on combustible cigarette market will be relatively limited and it is more likely Juul will attract vape users and non-smokers in urban areas, it said.Indonesia is one of the world’s largest markets for cigarettes and known for a variety of clove cigarettes it produces. The market is dominated by cigarette makers PT Hanjaya Mandala Sampoerna, a Philip Morris International Inc. unit, and PT Gudang Garam.Erajaya’s shares jumped 19%, the most since April 30, 2018, while its Indonesian counterpart PT Hanjaya Mandala Sampoerna fell 1.5%. The nation’s benchmark index Jakarta Composite Index closed 0.4% lower.(Updates share moves in final paragraph.)\--With assistance from Rieka Rahadiana.To contact the reporter on this story: Tassia Sipahutar in Jakarta at firstname.lastname@example.orgTo contact the editors responsible for this story: Divya Balji at email@example.com, Thomas Kutty AbrahamFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Earnings reports also from Walgreens and Nike, and economic data on consumer confidence, GDP, and more. And the G-20 meeting will cap off the week.
Two dividend stocks unfairly punished by the market in recent months, offering significant upside potential including one of North America’s largest beer brewers, Molson Coors Canada Inc. (TSX:TPX.B)(NYSE:TAP).
Look for Nike, Constellation Brands, and McCormick stocks to make big moves over the next few trading days in advance of earnings reports late in the week.
Investing.com - Market watchers will be looking ahead to a meeting between U.S. President Donald Trump and China's President Xi Jinping this week amid hopes for a thaw in trade relations, even if it alters expectations for Federal Reserve rate cuts.
(Bloomberg) -- The former commissioner of the Food and Drug Administration said he thinks Juul Labs Inc. will have a difficult time getting its e-cigarette approved under rules that will eventually force makers of the devices to go through government review to keep selling to consumers.“Juul is going to be in a hard spot to ever get their product approved,” ex-Commissioner Scott Gottlieb, who stepped down from leading the agency earlier this year, said on CNBC Friday.Altria Group Inc., which sells Marlboro cigarettes, bought a $12.8 billion stake in Juul last year. Shares of the tobacco company closed down 4.5% to $48 in New York, the lowest closing price since Jan. 30.During his two-year tenure atop the FDA, Gottlieb initially took a cautious approach toward strictly regulating e-cigarettes, seeing them as a tool to help adult smokers quit. He evolved into a harsh critic, calling youth use an “epidemic” and said that Juul and other e-cigarettes had attracted previous nonsmokers.To respond to a lawsuit claiming the agency failed to sufficiently regulate the products, the FDA has proposed giving manufacturers 10 months to submit applications to keep selling the nicotine devices.Juul said it's working on its application to the FDA, which will include information on how the product can help existing smokers stop using cigarettes. ``We are confident adult smokers will not be left without a viable alternative to combustible cigarettes,'' said Juul spokesman Matt David.Juul is popular with many young and underage people, and public health advocates have said that the company specifically targeted younger users. The company has pulled back on some marketing activities and has taken steps to make sure its product reaches only people of appropriate age. Juul’s website says that “We don’t want anyone who doesn’t smoke, or already use nicotine, to use Juul products.”“We remain confident that Juul can successfully navigate the PMTA process,” Altria spokesman Steven Callahan said in an emailed statement. PMTA refers to the FDA’s premarket tobacco application rules. A federal judge said last month the FDA must speed up its implementation of the rules, though hasn’t made a final ruling on the agency’s proposal.A spokesman for the FDA didn’t immediately provide a comment.Government health officials are also researching the use of Juul as part of a regular survey that gauges youth tobacco use. The data they collect could have an impact on the likely review of the devices.“If we see a further increase in overall use, and respondents report to using Juul mostly, then we think whatever Juul says, and whatever actions they point to that they have implemented, it won’t matter,” Ryan Tomkins, a stock analyst with Jefferies, said in a note to clients Friday.(Adds Juul statement in sixth paragraph)\--With assistance from Janet Freund, Tiffany Kary and Anna Edney.To contact the reporter on this story: Drew Armstrong in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Drew Armstrong at email@example.com, Timothy AnnettFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Constellation Brands (STZ) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Constellation Brands' (STZ) constant brand-building efforts, acquisitions and pipeline of innovations are encouraging. However, its soft wine & spirits business remains a headwind.
(Bloomberg Opinion) -- There are those who complain that the U.S. has lost a lot of its regional distinctiveness. “It wasn’t just the coffee shops — bars, restaurants, even the architecture of all the new housing going up in these cities looked and felt eerily familiar,” journalist Oriana Schwindt wrote last year after voyaging through every state. “Oh, and breweries. Thousands of breweries, springing up in recent years like mushrooms after a rain.”These observations generally accord with what I saw during a cross-country trip of my own last year.(1) In the case of breweries, they’re also backed up by some pretty amazing statistics. There were 7,450 breweries in the U.S. in 2018, according to the craft-beer trade group the Brewers Association, up from 1,574 in 2008 and 89 in 1978. The number of jobs at breweries jumped from 26,380 in 2008 to 77,902 in 2018, according to the Bureau of Labor Statistics.There is, however, still regional variation to be found. Yes, every city has a microbrewery and/or brewpub now, but some cities have a lot more microbreweries relative to their size than others. As I was looking through the above-mentioned BLS data for a Bloomberg Businessweek charticle about the brewery boom, I realized there was a handy way to sort this out: the “employment location quotient” that the BLS provides for states, metropolitan areas and counties in every industry. It measures an industry’s share of total jobs in an area divided by its share nationwide. In Bend-Redmond, a scenic and fast-growing metro area (estimated 2018 population: 191,996, up from 157,733 in 2010) just east of the Cascade Range in Oregon, one is effectively 18 times more likely to run into a brewery worker than in the country as a whole.These data are from the Quarterly Census of Employment and Wages, the hyper-detailed jobs report that the Bureau of Labor Statistics compiles from state unemployment insurance data. The QCEW doesn’t get nearly as much media attention as the survey-based monthly employment report because it comes out with a six-month lag, but man, is it illuminating. One important caveat: The QCEW gets so detailed that the BLS often has to suppress data so as not to reveal employment and wage information that can be traced to a single employer. Brewery employment data from the Chico, California, metropolitan area, home to the country’s third-largest craft brewer, Sierra Nevada Brewing Co., are suppressed. The largest craft brewer, D.G. Yuengling & Son Inc., is in Pottsville, Pennsylvania — which isn’t in a metropolitan area; plus, the BLS suppresses its county’s brewery employment data.So the above table isn’t definitive, but it still gives a pretty good picture of where the brewing boom is concentrated: scenic Western cities, and some other places. Bend-Redmond boasts the 10th-largest craft brewer, Deschutes Brewery Inc., and 29 others, according to Beer Me Bend. Metro Fort Collins has the fourth-largest craft brewer, New Belgium Brewing Co. Inc., an outpost of the top U.S. brewer overall, Anheuser-Busch, and at least 35 other breweries, according to the BLS. The metropolitan areas that are home to the top-selling non-craft U.S. beers — Denver (Coors), Milwaukee (Miller) and St. Louis (Budweiser and the other Anheuser-Busch beers) — all remain major beer employment centers, although Denver owes its status as the nation’s No. 1 metro area for brewery jobs at least as much to the more than 100 non-Coors breweries in the area. (Anheuser-Busch is owned by Belgium-based Anheuser-Busch InBev SA/NV, Coors and Miller by MillerCoors LLC, the domestic arm of Denver-based Molson Coors Brewing Co.)Pay tends to be higher at big breweries than at small ones, in part because all of Anheuser-Busch’s 12 “flagship breweries”(4) are unionized and most of MillerCoors’s are. All the metropolitan areas with annual brewery wages of $80,000 or more in the above chart are home to major Anheuser-Busch breweries.In the craft-beer mecca that is metropolitan San Diego, which according to the San Diego Brewers Guild currently has 128 breweries, wages are low but employment has more than doubled since 2014. The area was No. 2 in brewery jobs in 2018 and seems destined for the top spot. The giant Los Angeles metropolitan area is No. 3 but didn’t come close to making the above chart; it has a brewery employment location quotient of less than 1.Brewing is of course not what one could call a huge industry. Even in the beer-sodden Bend-Redmond area, breweries account for only 1% of total jobs; nationwide, it’s 0.05%. But the BLS QCEW Data Viewer can also be used to look at bigger industries and broader categories,(3) and discover some important things about U.S. economic geography. I recommend trying it out yourself if you’re interested, but I plan to do separate columns on what the latest QCEW data (released early this month) reveal about employment in finance, health care and a couple of other sectors. Also, if you’re into consuming artisanal beverages and such, you really should visit Bend, which also has high employment location quotients for coffee and tea manufacturing, medicinal and botanical manufacturing, and mobile food services.Coming Saturday: The most finance-heavy local economies.(1) Having gone on similar road trips in the late 1980s and early 1990s, when most of the country’s downtowns seemed near death, I see these developments in a more positive light than Schwindt does. But that's another story.(2) The "flagship" is to differentiate them from the many craft breweries the company has acquired in recent years, most of which aren't unionized.(3) For time series you're better off on the QCEW databases page.To contact the author of this story: Justin Fox at firstname.lastname@example.orgTo contact the editor responsible for this story: Brooke Sample at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Justin Fox is a Bloomberg Opinion columnist covering business. He was the editorial director of Harvard Business Review and wrote for Time, Fortune and American Banker. He is the author of “The Myth of the Rational Market.”For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Monster Beverage (MNST) is benefiting from brand strength, constant product launches and innovations. Further, the company is on track with growth in its international markets.